Last week, Atlantica Sustainable Infrastructure (NSDQ: AY) raised its quarterly dividend to 43 cents per share. That’s 4.9 percent higher than the year ago payment. It’s also what the company paid in December 2015, just prior to the bankruptcy of then parent Abengoa SA, making it a capstone for a remarkable metamorphosis.
For nearly eight years as a Conservative Holding, Brookfield Renewable Partners (TSX: BEP-U, NYSE: BEP) has reliably built cash flow from a growing global portfolio of contracted hydro, wind and solar assets. Dividends have increased nearly 60 percent since my initial recommendation and face few hurdles to 5 to 8 percent annual growth.
Heavy debt and revenue under pressure: Those are always the two biggest risks to dividends. And when combined, a cut is usually on the way. Both are common maladies for the four remaining companies on my Endangered Dividends List.
Since results of the November 2020 presidential election became clear, shares of Aggressive Holding Kinder Morgan Inc (NYSE: KMI) are up nearly 50 percent.
From range limits to battery costs, electric vehicles have a long way to go before they rule America’s roads. And even the leading name in EV manufacturing Tesla Inc (NSDQ: TSLA) still relies on tax credits and outside capital to fund operations.
Perceived value always sets the price for stocks. And anyone who’s invested a while knows that can shift on a dime, as leaders and laggards trade places. Quality doesn’t change so quickly. That’s the health and growth of companies’ underlying businesses.
Electricity, heating, water and communications have been essential services for well over a century. And over that time, not one of the literally thousands of mergers between operators has failed to produce a stronger and more resilient company.
No other industry can boast such a track record. And it’s the clearest possible endorsement of the advantages of utility scale. These sectors must be able to raise and effectively deploy massive amounts of capital to assuring universally reliable, affordable and environmentally sustainable service.
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Harness the tried and true wealth-building power of rising dividends.
Nothing compounds wealth like reinvesting a rising stream of dividends.
Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.